Process of Creating Value
The Daiken Group aims for the realization of a sustainable society and the creation of economic and social value bycontributing to solving social issues, such as the Sustainable Development Goals (SDGs), through business activities thatmake use of our unique strengths.

Daiken Global Environment
Vision 2050

Long-Term VisionGP25

P.47-50

TargetAchieve the Vision ofthe Group Corporate
Philosophy P.3-4

P.4

The New Medium-Term Management Plan
Medium-Term
Management Plan
GP25 2nd Stage(Fiscal 2020-2022)
P.30-32(External environmentand trends)

Materiality
P.21-22

Financial foundation

Input

Strength ❶Research andDevelopment
Capabilities

Industrialmaterials

A wide variety of customers
ranging from the housing andconstruction industries to various
manufacturers

Natural resources
Usage of wood materials (1,000 t)
Domestic: 219 Global: 1,565
Total energy input (1,000 GJ)
Domestic: 2,711 Global: 5,210
Water resource input (1,000 m3)
Domestic: 1,859 Global: 973

Offering of products that use strengths P.15-16

Creation of economic and social value

Industrial materials business
Make full use of wood and mineral resourcesand offer a variety of functional materials
MDF

Veneer/LVL

Insulation board

Tatami facing

DAILITEDAILOTONE

Engineeringbusiness

Domestic newhome market

Strategies by Business Segmentand Market
P.31-32, P.37-38

Pursue the possibilities ofsustainable industrial materials
and a safe, secure, healthy,
and comfortable space

Human
Resource
Strategies

Building materials business
Offer high-performance building materials
that form spaces focusing on safety,
peace of mind, health, and comfort

P.23-28

01

Contribution to carbon neutrality
by utilizing wood resources02

Promotion the use of domestictimber

03

Effective utilization of unusedresources

04

Creating a safe, secure, healthy,
and comfortable space

05

Saving construction time andwork

Flooring

Acoustic products

Fiscal 2022

DoorCabinet

Financial Outcomes

StairsConstruction materials

Engineering businessBusinessFoundation

Creating shared value (CSV) by Daiken businesses

Financial
Strategies

Group Conduct Guidelines

GovernanceInterior construction for public spaces,
commercial facilities, and houses to create
spaces that optimize the performance ofindustrial and building materials
Interior projects for buildings and offices
Home renovation
Apartment renovation

Net sales:
Operating profit:
EBITDA*:
Profit attributable toowners of parent:
ROE:
Total dividend:
Dividend payout ratio:

223.3 billion yen
17.3 billion yen
24.5 billion yen
7.8 billion yen
10.9%
2.6 billion yen
33.1%

DataCustomer base

OutcomeHome renovation
marketHuman resource
Consolidated number ofemployees: 3,965
The nationwide branch andsales office networks, as well as
dedicated sales personnel bymarket and customer
Seven group companies’
installation work management
systemOutputFoundation Supporting Value Creation

R&D center
R&D expenses:1.5 billion yen

Public andcommercial buildings

Building materials
business

Create a new standard withfunctional products

Shareholders’ equity:
66.3 billion yen
Interest-bearing debts:
28.5 billion yen

Research anddevelopment

Industrial materials
businessStrength ❷Product
Deployment
Capabilities

Source of valuecreation

Businesses and market
strategies that connect ourstrengths to value creation
Global markets

Relationships of trust withprofessional customers

Six capitals

Capital investments:
2.8 billion yen
Production bases: 20 bases

Strength ❹Integrated System

Strength ❸Customer Base

P.29

P.35-38

Strategy for Value Creation

Medium-Term
Management Plan
GP25 1st Stage(Fiscal 2017-2019)

GP25 3rd Stage (Fiscal 2023-2026)

P.19-20Engaging in the development,installation, and constructionof industrial and building
materials

Risks Opportunities

Production system

Business Models
and Strengths

Daiken Group's Value Creation

Social issues and needs*Operating profit + Depreciation + Depreciation of goodwill

Nonfinancial OutcomesAmount of carbon storage by the wood industrial
materials business:
803,000 t-CO2/year
Utilization of domestic timber for flooring
substrates
51%
Total CO2 emissions in Japan (Compared tofiscal 2014):(36%)

Input management resources*Fiscal 202217DAIKEN GROUP REPORT 2022

DAIKEN GROUP REPORT 202218